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The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
▶ JAXA Launches 7th H3 Rocket from Japan’s Kagoshima Pref.
26 Oct, 2025
Photo Source: JAXA
Japan’s Aerospace Exploration Agency (JAXA) successfully launched its seventh H3 rocket from the Tanegashima Space Center in Kagoshima Prefecture on Sunday. The rocket, equipped with four solid rocket boosters, is carrying the first HTV-X resupply vehicle, which is bound for the International Space Station to deliver supplies and equipment.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/technology/20251026-288655/
▶ Japan's new PM Takaichi welcomed by ASEAN, stresses security cooperation
27 Oct, 2025
Photo Source: Kyodo
Japanese Prime Minister Sanae Takaichi, the country’s first female PM, emphasized continuing Shinzo Abe’s vision of a free and open Indo-Pacific during her first overseas trip to the Japan-ASEAN summit in Kuala Lumpur. She highlighted strengthening ties with Southeast Asia amid concerns about China, while announcing plans to expand security aid and develop an AI framework with the region. Takaichi did not meet Chinese leaders but said she hopes to engage at future meetings like APEC, and aims to use ASEAN cooperation to boost Japan’s economic growth and advanced technology investment.
Mainichi: https://mainichi.jp/english/articles/20251027/p2g/00m/0in/002000c
▶Japan to lead $1.45bn loan for Uzbekistan renewables
28 Oct, 2025
Photo Source: Akira Takemura/Nikkei
The Japan Bank for International Cooperation (JBIC) will lead a $1.45 billion cofinancing package for two large renewable energy projects near Samarkand, Uzbekistan, with a combined capacity of 1,000 MW. Saudi Arabia’s ACWA Power will hold a 51% stake, joined by Japanese firms Sumitomo, Chubu Electric, and Shikoku Electric. JBIC will provide $635 million, with private banks and Nippon Export and Investment Insurance (NEXI) also participating to mitigate investment risks.
The projects support Uzbekistan’s goal of increasing renewable energy from 10% to 54% by 2030 and aim to reduce reliance on natural gas. Japan hopes the investments will strengthen its economic presence in Central Asia amid growing influence from China and Russia.
Sumitomo Corporation: https://www.sumitomocorp.com/en/jp/news/release/2025/group/20500
▶ Japan PM Takaichi and US President Trump tout 'new golden age' for alliance
28 Oct, 2025
Photo Source: AP
Prime Minister Sanae Takaichi and President Trump pledged to deepen economic cooperation, including implementing Japan’s $550 billion investment commitment in the U.S. by January 2029. They signed agreements to strengthen trade, secure critical minerals and rare earth supplies, and mobilize public and private support for projects addressing supply chain gaps. Measures will also be taken to streamline permitting processes for mining and related investments, while Japan aims to boost its defense spending and invest in U.S. industries, including through business deals with companies like Toyota.
▶ Japan's Takaichi to push defense exports on back of high approval rating
28 Oct, 2025
Photo Source: Kyodo
Japan’s new Prime Minister Sanae Takaichi, with high public approval, is pushing to expand defense exports and accelerate military spending, aiming to revise restrictions that currently limit exports to specific purposes. With Komeito now out of government, the LDP has more freedom to pursue these policies, including lifting export limits and increasing defense spending to 2% of GDP sooner than planned. Challenges remain, as Takaichi’s coalition lacks a full parliamentary majority and will need some opposition support to pass budget and policy changes.
▶ Japan, US agree to shipbuilding cooperation as China builds capacity
29 Oct, 2025
Photo Source: Hirofumi Kaneoka/Nikkei
Japan and the U.S. signed a memorandum of understanding to cooperate on expanding shipbuilding capacity and investment in the U.S., addressing concerns about China’s growing influence. The agreement includes shipyard modernization, talent training, AI and robotics innovation, and potential maintenance of U.S. military ships. Japan aims to double its shipbuilding capacity by 2035, while the U.S. seeks to revive its domestic industry. A working group will develop specifics for the partnership.
▶ Telephone meeting between Prime Minister TAKAICHI and President von der Leyen of the European Commission
29 Oct, 2025
On October 29, Prime Minister Sanae Takaichi of Japan held a 15-minute phone call with European Commission President Ursula von der Leyen. The leaders discussed Japan-EU strategic partnership, emphasizing cooperation to uphold a free and open international order, address global challenges, and deepen collaboration in security, economic security, and industrial competitiveness.
MOFA: https://www.mofa.go.jp/erp/ep/pageite_000001_01342.html
▶ Japan to Tighten Regulations on Mega Solar Power Plants over Nature, Disaster Risk Concerns
30 Oct, 2025
The Japanese government plans to tighten regulations on mega solar power plants due to environmental damage and disaster risks. A five-ministry liaison, including the Environment and Economy ministries, will propose measures this year, such as legal amendments, stricter monitoring, revised guidelines, and new penalties. The government will review 16 existing laws related to land use and conservation, and may expand protections under the Endangered Species Law to cover renewable energy projects. The Economy Ministry also plans to broaden information-sharing on operators who violate laws, including non-certified ones, and strengthen monitoring systems.
Yomiuri :https://japannews.yomiuri.co.jp/business/economy/20251030-289959/
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▶ Tokyo Gas to Consider Procuring Alaska LNG
24 Oct, 2025
Tokyo Gas has signed a non-binding letter of intent with a Glenfarne Group subsidiary to explore procuring 1 million tons of LNG annually from an Alaska project around 2030. The initiative follows U.S.-Japan tariff negotiations, where Japanese participation in the project was a key issue. Jera, Japan’s largest power generator, has also signed a similar letter to potentially purchase 1 million tons per year for 20 years.
JIJI: https://jen.jiji.com/jc/eng?g=ind&k=2025102400940
Tokyo Gas (Japanese): https://www.tokyo-gas.co.jp/news/press/20251024-01.html
▶ Tokyo Metropolitan Government Selects 2 Teams for “Flying Car” Project Led by Japan Airlines and Nomura Real Estate Development
25 Oct, 2025
Two teams have been selected for Tokyo’s “flying car” project. One team of nine companies, including Japan Airlines, plans to use Archer Aviation aircraft, while the other team of seven companies, including Nomura Real Estate and ANA Holdings, will use SkyDrive and Joby Aviation aircraft. Demonstration flights over Tokyo’s coastal areas and the Tama River are planned within the next fiscal year, with partial commercial operations targeted for fiscal 2027 and full urban commercialization by fiscal 2030.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20251025-288631/
▶ Kawasaki Heavy tests prototype autonomous helicopter as 'flying truck'
28 Oct, 2025
Photo Source: Eisaku Nitta/Nikkei
Japan’s Kawasaki Heavy Industries tested the K-Racer-X2, an engine-powered autonomous helicopter designed to carry heavy loads in mountainous areas. The vehicle flew part of a 1,500-meter test route with a 100-kg cargo, but the load was dropped for safety after a power decline. Kawasaki aims for the K-Racer-X2 to autonomously transport up to 200 kg by fiscal 2028 over distances of 100 km, using a high-octane gasoline engine adapted from a Ninja H2R motorcycle.
The company envisions applications in disaster relief, power grid maintenance, and dual-use scenarios. Japanese peers like Mitsubishi Heavy Industries, Yamaha, and IHI are also developing engine-powered cargo drones with long-range and heavy-load capabilities. Experts predict the global market for large cargo drones will grow to $6.4 billion by 2030, with engine-powered drones suitable for remote and mountainous areas, while urban use remains challenging due to noise.
▶ Telecom giant KDDI to launch AI-powered news search service in Japan
28 Oct, 2025
KDDI Corp. plans to partner with Google to launch a generative AI-powered news search service in Japan by spring 2026. The service will use Google’s Gemini AI model and only search content from participating domestic media to avoid copyright issues, clearly citing source articles. Six news companies, including online media, are expected to participate. The initiative comes amid growing global concerns over unauthorized use of news content by AI.
Kyodo: https://english.kyodonews.net/articles/-/63679
▶ SoftBank, Toshiba, Hitachi among firms tipped to make $400bn in US deals
28 Oct, 2025
Photo Source: Shintaro Ino/Nikkei
Japanese companies, including Mitsubishi, Toshiba, SoftBank, and Panasonic, are planning 21 major U.S. projects worth nearly $400B in energy, AI, and infrastructure. This supports Japan’s $550B investment pledge under a trade deal with the U.S. Other deals include Fujifilm ($3.2B), Takeda ($30B), Jera ($1.5B), and Japanese airlines buying ~100 Boeing planes.
▶ Hitachi Rail becomes world’s first transportation firm to adopt new NVIDIA IGX Thor solution for real-time AI
28 Oct, 2025
Hitachi Rail will integrate NVIDIA’s IGX Thor platform into its AI-driven digital asset management system, HMAX, becoming the first transportation company to do so. The upgrade provides up to 8× higher AI compute and 2× better connectivity, enabling real-time edge AI processing on trains and infrastructure. This allows faster, more efficient analysis of large data volumes, improving predictive maintenance and operational optimization. The move aligns with Hitachi’s broader AI initiatives, including its Lumada 3.0 solutions and recent partnership with OpenAI, and supports the global expansion of HMAX across transport and other industries.
Hitachi: https://www.hitachi.com/New/cnews/month/2025/10/251029.pdf
▶ Mitsui O.S.K. eyes 150 LNG carrier fleet as Trump policy spurs demand
29 Oct, 2025
Photo Source: Tomonori Washida/Nikkei
Mitsui O.S.K. Lines plans to expand its LNG carrier fleet to 150 vessels by the 2030s to meet growing global shipping demand driven by U.S. energy policies and trade shifts. Japan’s top three shipping companies currently own 40% of the world’s LNG carriers, with Mitsui O.S.K. operating 132 ships as of June. Despite a current market oversupply and low spot charter rates, the company expects long-term demand to rise due to expanded U.S. LNG exports, reduced Chinese imports, EU moves to cut Russian gas, and longer shipping distances from new trade routes. Mitsui O.S.K. continues fleet expansion with vessels built in South Korea, aiming to strengthen its expertise in LNG transportation.
▶ Japan's new resupply spacecraft docks at International Space Station
30 Oct, 2025
Photo Source: JAXA
Japan’s new HTV-X resupply spacecraft successfully arrived at the International Space Station early Thursday. Astronaut Kimiya Yui used a robotic arm to capture and attach the vehicle, which is the successor to the Kounotori cargo ships. Launched on JAXA’s seventh H3 rocket from Tanegashima, the HTV-X carries supplies including food, water, and carbon dioxide removal equipment for experiments supporting future lunar and Mars missions.
Japan times: https://www.japantimes.co.jp/news/2025/10/30/japan/science-health/japan-space-ship-arrival-iss/
▶ Nissan projects $1.8bn operating loss for fiscal 2025
30 Oct, 2025
Source: Nissan
Nissan Motor expects a 275 billion yen ($1.8 billion) operating loss for the fiscal year ending March 2026, citing U.S. tariffs and currency volatility as major pressures. This marks the automaker’s first operating forecast for fiscal 2025. For the April–September half, Nissan narrowed its expected loss to 30 billion yen from 180 billion yen, aided by temporary cost-saving gains. CFO Jeremie Papin warned, however, of a tough second half due to intense competition, supply chain risks, and seasonal factors. He highlighted two key risks — potential Nexperia chip supply restrictions and a fire at a North American aluminum supplier — both affecting multiple automakers, not just Nissan.
Nikkei Asia: https://asia.nikkei.com/business/automobiles/nissan-projects-1.8bn-operating-loss-for-fiscal-2025
▶ Sojitz Begins Import of Heavy Rare Earths from Australia
30 Oct, 2025
Photo Source: Lynas Rare Earths
Sojitz Corporation has begun importing heavy rare earths (HREs) from Lynas Rare Earths, sourced from Australia’s Mt. Weld mine and refined in Malaysia—the first such import to Japan. HREs, essential for technologies like electric vehicles and industrial robots, enhance metal properties such as magnetism and durability. Sojitz, which has a long history in rare earths and multiple investments in Lynas, aims to diversify the supply chain and ensure a stable supply of these critical materials for the Japanese market.
Sojitz: https://www.sojitz.com/news/news_file/file/topics_20251030e.pdf
▶ MHI and Nippon Shokubai to Develop Ammonia Cracking System for NEDO's "Development of Technologies for Building a Competitive Hydrogen Supply Chain" Project
30 Oct, 2025
Photo Source: MHI
Mitsubishi Heavy Industries (MHI) and Nippon Shokubai received approval from Japan’s NEDO for a project to develop a hydrogen supply chain using ammonia as a carrier. The project focuses on medium-scale, decentralized ammonia cracking technology near hydrogen demand sites, employing a novel, low-temperature, durable catalyst without noble metals. Running through fiscal 2027, MHI will handle plant design and specifications, while Nippon Shokubai will develop and test ammonia cracking catalysts. Supported by Hokkaido Electric Power, the project aims to advance practical hydrogen and ammonia supply systems, supporting decarbonization and a carbon-neutral society.
MHI: https://www.mhi.com/news/25103003.html
▶ Axiom and Japan startup team to deliver cargo from space to Earth
31 Oct, 2025
Photo Source: ElevationSpace
Axiom Space, a U.S. private space company, has signed an MOU with Japan’s ElevationSpace to collaborate on commercial missions to the International Space Station. Axiom, which plans to launch a commercial craft by 2027 and eventually build a private space station, aims to reduce costs using ElevationSpace’s re-entry technology for returning samples to Earth. ElevationSpace, based in Sendai, is developing Japan’s first private re-entry satellite. The partnership supports both companies’ goals of enabling low-cost, efficient material return from space—a key step toward commercializing space stations as the ISS nears retirement around 2030.
▶ Daiichi Sankyo to spend $600m to keep drug discovery in Japan
31 Oct, 2025
Photo Source: Daiichi Sankyo
Daiichi Sankyo will invest 90 billion yen ($590 million) in a new Tokyo research facility to develop next-generation drugs, aligning with Prime Minister Sanae Takaichi’s push to strengthen Japan’s biopharmaceutical sector for economic security. The eight-story center, set for completion in December 2027, will focus on discovering new drug technologies to follow the company’s successful cancer therapy Enhertu, which accounts for about 30% of its revenue. The investment aims to boost domestic R&D, attract and train researchers, and counter Japan’s decline in medical innovation compared with the U.S. and China. While manufacturing is being diversified globally, Daiichi Sankyo is concentrating advanced research in Japan to maintain technological leadership in oncology and beyond.
Nikkei Asia: https://asia.nikkei.com/business/pharmaceuticals/daiichi-sankyo-to-spend-600m-to-keep-drug-discovery-in-japan
▶ Kawasaki Heavy to win $1.5bn contract for New York City subway cars
31 Oct, 2025
Photo Source: New York City Transit
Kawasaki Heavy Industries’ U.S. railcar unit is set to win a $1.5 billion contract from New York City Transit to supply 378 new R268 subway cars for delivery between 2028 and 2030. The cars, to be built at Kawasaki’s Nebraska plant, will feature wider doors, digital displays, and surveillance cameras, with most materials sourced locally in the U.S. Based on the existing R211 model, the new order builds on a long partnership—New York has bought over 2,200 subway cars from Kawasaki since 1982, making it the city’s largest railcar supplier. The deal will raise Kawasaki’s share of NYC’s subway fleet to over 50%, reflecting strong post-pandemic demand for fleet renewal and the company’s growing North American business.
Nikkei Asia: https://asia.nikkei.com/business/transportation/kawasaki-heavy-to-win-1.5bn-contract-for-new-york-city-subway-cars
▶ Japan's Daiwa House to buy engineering firm for $1.9bn in data center push
31 Oct, 2025
Photo Source: Arisa Moriyama/Nikkei
Daiwa House Industry will acquire Sumitomo Densetsu for 292 billion yen ($1.89 billion), its largest-ever acquisition, to strengthen its position in the growing data center and semiconductor facility market. The tender offer, priced at 9,760 yen per share, runs through Dec. 15, after which Sumitomo Densetsu will become a wholly owned subsidiary following a share buyback from Sumitomo Electric Industries. Daiwa House aims to leverage Sumitomo Densetsu’s advanced electrical engineering technology to boost its corporate and logistics facilities segment, now a major profit driver as Japan’s housing market slows. The deal aligns with Daiwa’s strategy to expand its data center business, supported by a new division established earlier this year.
Published: October 2025
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Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
